<SUBMISSION>
<ACCESSION-NUMBER>0000891092-03-001074
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20030331
<FILING-DATE>20030515
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CORNICHE GROUP INC /DE
<CIK>0000320017
<ASSIGNED-SIC>6399
<IRS-NUMBER>222343568
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-10909
<FILM-NUMBER>03700443
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>610 SOUTH INDUSTRIAL BLVD STE 220
<CITY>EULESS
<STATE>TX
<ZIP>76040
<PHONE>8172834250
</BUSINESS-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>FIDELITY MEDICAL INC
<DATE-CHANGED>19951025
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>FIDELITY MEDICAL SERVICES INC
<DATE-CHANGED>19830825
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>e14837_10q.txt
<DESCRIPTION>FORM-10Q
<TEXT>
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   ----------

                                    FORM 10-Q

|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
           ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

                                       OR

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

      For the Transition Period from to
                                        --------------- ------------------

                         Commission file number 0-10909

                           CORNICHE GROUP INCORPORATED
             (Exact name of registrant as specified in its charter)

         DELAWARE                                              22-2343568
State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

           330 SOUTH SERVICE ROAD, SUITE 120, MELVILLE, NEW YORK   11747
               (Address of principal executive offices)          (zip code)

Registrant's telephone number, including area code: 631-574-4955

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No |_|

            23,050,085 SHARES, $.001 PAR VALUE, AS OF APRIL 30, 2003

(Indicate the number of shares  outstanding  of each of the issuer's  classes of
common stock, as of the latest practicable date)

<PAGE>

                                    I N D E X

                                                                        Page No.
                                                                        --------
Part I - Financial Information:

Item 1.  Financial Statements (Unaudited):

         Balance Sheets
         At March 31, 2003 and December 31, 2002                               3

         Statements of Operations
         For the three months
         ended March 31, 2003 and 2002                                         4

         Statement of Stockholders' Deficit
         For the three months ended March 31, 2003                             5

         Statements of Cash Flows
         for the three months ended March 31, 2003
         and 2002                                                              6

         Notes to Financial Statements                                      7-11

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of                                12-13
         Operations

Item 3.  Quantitative and Qualitative Disclosures
         About Market Risk                                                    14

Item 4.  Controls and Procedures                                              14

Part II - Other Information:

Item 1.  Legal Proceedings                                                    15

Item 6.  Exhibits and Reports on Form 8-K.                                    15

         Signatures                                                           15


                                       2

<PAGE>


                           CORNICHE GROUP INCORPORATED

                                 BALANCE SHEETS
                                   (Unaudited)

ASSETS

                                                      March 31,     December 31,
                                                        2003            2002
                                                      ---------     ------------
Current assets:
  Cash and equivalents                              $    14,877     $    19,255
  Notes receivable, net of allowance
    of $250,000                                       1,000,000       1,000,000
  Prepaid expenses and other current
    assets, net of allowance of $8,103                   46,100          40,094
                                                    -----------     -----------
      Total current assets                            1,060,977       1,059,349

Property and equipment, net                                 587              --
Deferred Acquisition Costs                              110,912         123,835
Other assets                                              3,000              --
                                                    -----------     -----------
                                                    $ 1,175,476     $ 1,183,184
                                                    ===========     ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Dividends payable - preferred stock               $   397,433     $   385,512
  Accounts payable                                      427,360         344,279
  Accrued liabilities                                   156,462         157,806
  Stockholder advances                                  106,000         106,000
  Notes payable                                         185,000         125,000
  Current portion of long-term debt                      23,093          22,595
                                                    -----------     -----------
      Total current liabilities                       1,295,348       1,141,192

Unearned revenues                                       157,196         175,200

Long-term debt                                            3,549           9,513

Series A Convertible Preferred Stock:
  $0.07 cumulative convertible
    preferred stock; liquidation value
      - $1.00 per share; authorized,
      1,000,000 shares; outstanding,
      681,174 shares                                    681,174         681,174

Stockholders' Deficit:
  Preferred stock;  authorized,
    5,000,000 shares Series B convertible
    redeemable preferred stock, liquidation
    value, 10 shares of common stock per
    share; $0.01 par value; authorized,
    825,000 shares; issued and outstanding,
    10,000 shares                                           100             100

Common stock, $.001 par value; authorized,
  75,000,000 shares; issued and
  outstanding, 22,650,085 shares
  at March 31, 2003 and
  22,398,710 shares at
  December 31, 2002                                      22,650          22,399
Additional paid-in capital                            8,864,327       8,847,573
Accumulated deficit                                 (9,848,868))     (9,693,967)
                                                    -----------     -----------
       Total stockholders' deficit                     (961,791)       (823,895)
                                                    -----------     -----------
                                                    $ 1,175,476     $ 1,183,184
                                                    ===========     ===========

                  See accompany notes to financial statements


                                       3
<PAGE>

                           CORNICHE GROUP INCORPORATED

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                    Three Months Ended March 31,
                                                    ----------------------------
                                                       2003             2002
                                                    -----------     ------------
Earned revenues                                     $    18,004     $    24,552

Direct costs                                            (12,923)        (19,370)
                                                    -----------     -----------

Gross profit                                              5,081           5,182

General and administrative
  expenses                                             (128,578)       (371,435)
                                                    -----------     -----------

Operating loss                                         (123,497)       (366,253)

Other income (expense):
  Realized loss on marketable securities                     --          (3,490)
  Interest income                                             4          41,020
  Interest expense                                      (19,487)         (1,119)
                                                    -----------     -----------
Total other income                                      (19,483)          36,411
                                                    -----------     -----------

Net loss                                               (142,980)       (329,842)

Preferred dividend                                      (11,921)        (11,921)
                                                    -----------     -----------

Net loss attributable to common stockholders        $  (154,901)    $  (341,763)
                                                    ===========     ===========

Net loss per common share                           $     (0.01)    $     (0.02)
                                                    ===========     ===========

Weighted average number of
common shares outstanding                            22,517,599      22,290,710
                                                    ===========     ===========

                 See accompanying notes to financial statements.


                                       4

<PAGE>

                           CORNICHE GROUP INCORPORATED

                       STATEMENT OF STOCKHOLDERS' DEFICIT

                    FOR THE THREE MONTHS ENDED MARCH 31, 2003
                                   (Unaudited)

<TABLE>
<CAPTION>
                                    Series B
                                   Convertible
                                 Preferred Stock          Common Stock           Additional
                               ------------------      -------------------        Paid-In      Accumulated
                               Shares      Amount      Shares       Amount         Capital       Deficit         Total
                               ------      ------      ------       ------       ----------    -----------     ---------
<S>                            <C>          <C>      <C>            <C>          <C>           <C>             <C>
Balance - January 1, 2003      10,000       $100     22,398,710     $22,399      $8,847,573    $(9,693,967)    $(823,895)

Issuance of common stock
   upon exercise of options        --         --        150,000         150             600             --           750

Issuance of common stock
   for services                    --         --        100,000         100           2,900             --         3,000

Issuance of common stock
   to directors                    --         --          1,375           1             123             --           124

Stock options granted
  with debt                        --         --             --          --          13,131             --        13,131

Series A Convertible
   Stock dividends                 --         --             --          --              --        (11,921)      (11,921)

Net loss                           --         --             --          --              --       (142,980)     (142,980)
                               ------       ----     ----------     -------      ----------    -----------     ---------
Balance-March 31, 2003         10,000       $100     22,650,085     $22,650      $8,864,327    $(9,848,868)    $(961,791)
                               ======       ====     ==========     =======      ==========    ===========     =========
</TABLE>

                 See accompanying notes to financial statements.


                                       5

<PAGE>

                          CORNICHE GROUP INCORPORATED

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                          For the Three
                                                           Months Ended
                                                            March 31,
                                                    -------------------------
                                                       2003           2002
                                                    ----------     ----------
Cash flows from operating activities:

Net loss                                            $(142,980)    $  (329,842)
Adjustments to reconcile net loss to net
 cash used in operating activities:
Common shares issued and stock
 options granted for services rendered and
 interest expense                                      16,255             814
Depreciation and amortization                              --           8,936
Unearned revenues                                     (18,004)        (24,978)
Deferred acquisition costs                             12,923          18,252
Changes in operating asset and
 liability account balances:
Prepaid expenses and other current assets              (9,006)        (10,009)
Accounts payable                                       83,081         112,785
Accrued liabilities                                    (1,344)        (32,094)
                                                    ---------     -----------
Net cash used in operating activities                 (59,075)       (256,136)

Cash flows from investing activities:
(Increase) decrease in marketable securities               --       1,503,374
Notes receivable                                           --      (1,250,000)
Acquisition of property and equipment                    (587)         (1,134)
                                                    ---------     -----------
Net cash provided by (used in)
  investment activities                                  (587)        252,240

Cash flows from financing activities:
Issuance of common stock                                  750              --
Advances on notes payable                              60,000              --
Payment of capital lease obligations                       --            (343)
Repayment of long-term debt                            (5,466)         (5,009)
                                                    ---------     -----------
Net cash provided by (used in)
  financing activities                                 55,284          (5,352)
                                                    ---------     -----------
Net decrease in cash and cash equivalents              (4,378)         (9,248)

Cash and cash equivalents at
  beginning of period                                  19,255          51,268
                                                    ---------     -----------
Cash and cash equivalents at
  end of period                                     $  14,877     $    42,020
                                                    =========     ===========
Supplemental Disclosure of Cash
  Flow Information:

  Interest paid                                     $     663     $     1,119
                                                    =========     ===========
Supplemental Schedule of Non-cash Financing
  Activities:

  Series A Preferred Stock dividends                $  11,921     $    11,921
                                                    =========     ===========
  Issuance of common stock for services rendered    $   3,124     $       814
                                                    =========     ===========
  Stock options issued with debt                    $  13,131     $        --
                                                    =========     ===========

                 See accompanying notes to financial statements.


                                       6

<PAGE>

                           CORNICHE GROUP INCORPORATED

                     NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1 - THE COMPANY.

            Corniche  Group  Incorporated  ("the  Company")  was a  provider  of
      extended   warranties   and  service   contracts   via  the   Internet  at
      warrantysuperstore.com  through  June 30, 2002.  In June 2002,  management
      determined,  in light of continuing  operating  losses, to discontinue its
      warranty  and  service   contract   business  and  to  seek  new  business
      opportunities for the Company.  On February 6, 2003, the Company appointed
      Mark  Weinreb as a member of the Board of Directors  and as its  President
      and  Chief  Executive  Officer.  The  Company  and Mr.  Weinreb  have been
      exploring business plans for the Company that may involve,  under the name
      "Phase III Medical,  Inc.",  entering  the medical  sector by acquiring or
      participating  in  one  or  more  biotech  and/or  medical   companies  or
      technologies,  owning one or more drugs or medical devices that may or may
      not yet be available to the public,  or acquiring rights to one or more of
      such  drugs or medical  devices  or the  royalty  streams  therefrom.  Mr.
      Weinreb was  appointed to finalize and execute the  Company's new business
      plan. The Company will need to recruit  management,  business  development
      and technical personnel, and develop its business model.  Accordingly,  it
      will be necessary  for the Company to raise new  capital.  There can be no
      assurance  that any such  business  plan  developed by the Company will be
      successful,  that the Company will be able to acquire such new business or
      rights or raise new capital,  or that the terms of any transaction will be
      favorable to the Company.

            The  business of the Company  today  comprises  the "run off" of its
      sale of extended warranties and service contracts via the Internet and the
      new business opportunity it is pursuing in the medical/bio-tech sector.

            The Company's  consolidated  financial statements have been prepared
      assuming the Company will continue as a going concern.  As discussed,  the
      Company sold its  insurance  subsidiary  in July 2001.  Additionally,  the
      Company  discontinued  sales of its extended  warranty  service  contracts
      through its web site in  December  2001.  Accordingly,  the Company has no
      operations  nor available  means to finance its current  expenses and with
      which to pay its current  liabilities.  These  factors  raise  substantial
      doubt about the  Company's  ability to continue  as a going  concern.  The
      consolidated  financial  statements  do not include any  adjustments  that
      might result from the outcome of this uncertainty.

NOTE 2 - BASIS OF PRESENTATION.

            The accompanying  unaudited financial  statements have been prepared
      in accordance with accounting  principles generally accepted in the United
      States  of  America  for  interim  financial   information  and  with  the
      instructions for Form 10-Q and Article 10 of Regulation S-X.  Accordingly,
      they do not  include  all of the  information  and  footnotes  required by
      accounting  principles  generally accepted in the United States of America
      for  complete  financial  statements.  In the opinion of  management,  the
      statements  contain all adjustments  (consisting  only of normal recurring
      accruals)  necessary to present fairly the financial  position as of March
      31, 2003,  the results of operations  for the three months ended March 31,
      2003 and 2002 and the cash flows for the three months ended March 31, 2003
      and 2002.  The results of operations  for the three months ended March 31,
      2003 are not necessarily  indicative of the results to be expected for the
      full year.

            The  December  31,  2002  balance  sheet has been  derived  from the
      audited financial statements at that date included in the Company's Annual
      Report on Form 10-K. These unaudited  financial  statements should be read
      in conjunction with the financial statements and notes thereto included in
      the Company's Annual Report on Form 10-K.

NOTE 3 - ACCOUNTING POLICIES.

            There were no changes in the Company's  accounting  policies  during
      the quarter ended March 31, 2003.

NOTE 4 - NOTES RECEIVABLE.

            As previously reported, on January 7, 2002, the Company entered into
      a Stock Contribution  Exchange Agreement (the "Exchange  Agreement") and a
      Supplemental  Disclosure  Agreement (together with the Exchange Agreement,
      the  "Agreements")   with  StrandTek   International,   Inc.,  a  Delaware
      corporation  ("StrandTek"),  certain of StrandTek's principal shareholders
      and certain  non-shareholder  loan  holders of StrandTek  (the  "StrandTek
      Transaction").  The Exchange  Agreement  was amended on February 11, 2002.
      Consummation of the StrandTek Transaction was conditioned upon a number of
      closing  conditions which  ultimately  could not be met. As a result,  the
      Agreements  were formally  terminated by the Company and StrandTek in June
      2002.


                                       7

<PAGE>

            In January  2002,  the Company  advanced  to  StrandTek a loan of $1
      million on an unsecured basis,  which is personally  guaranteed by certain
      of the principal  shareholders of StrandTek and a further loan of $250,000
      on February 19, 2002 on an unsecured basis. Such loans bear interest at 7%
      per  annum  and were due on July 31,  2002  following  termination  of the
      Agreements in June 2002.

NOTE 4 - NOTES RECEIVABLE (continued)

            StrandTek  defaulted  on the  payment  of  $1,250,000  plus  accrued
      interest  due to the Company on July 31, 2002.  As a result,  on August 6,
      2002,  the Company  filed a complaint in the Superior  Court of New Jersey
      entitled Corniche Group  Incorporated v StrandTek  International,  Inc., a
      Delaware   corporation,   StrandTek   International,   Inc.,   a   Florida
      corporation,  David M. Veltman,  William G. Buckles Jr., Jerome Bauman and
      Jan Arnett.  The complaint  seeks recovery of the $1,250,000  loans,  plus
      interest,  costs  and fees,  and seeks  recovery  against  the  individual
      defendants pursuant to their partial guarantees. On February 28, 2003, the
      Court issued a ruling granting the Company  partial summary  judgment with
      respect to the principal aspects of its complaint.  The Court rejected the
      defenses of StrandTek  and agreed with the Company that it was entitled to
      judgment against StrandTek and the guarantors. On May 9, 2003, the Company
      was  granted  a second  summary  judgment  motion to have  final  judgment
      entered  for the exact  amounts  due from each  defendant  and to  dismiss
      defendants'  counterclaims.  No  assurances  can be given  that  StrandTek
      and/or the  individual  guarantors  will not attempt to appeal the Court's
      grant of summary judgment,  or that the Company will be able to collect on
      any  judgment.  The Company has recently  been  informed that on April 16,
      2003,  Strandtek made an assignment  for the benefit of its creditors,  so
      that any collection on its judgment other than on the personal  guarantees
      is highly unlikely.

            Since the $250,000 was  unsecured  and not  guaranteed,  the Company
      established an allowance of $250,000 at December 31, 2002.

NOTE 5 - PROPERTY AND EQUIPMENT.

            Property and equipment consists of the following:

                                                    March 31,   December 31,
                                                      2003          2002
                                                   ---------    ------------
     Computer equipment                            $     587     $      --
     Computer software                               602,014       602,014
                                                   ---------     ---------
                                                     602,601       602,014
     Less: Accumulated depreciation                 (602,014)     (602,014)
                                                   ---------     ---------
                                                   $     587     $      --
                                                   =========     =========

            Depreciation  and  amortization  charged  to  operations  was $0 and
      $8,936 for the three months ended March 31, 2003 and 2002, respectively.

NOTE 6 - NOTES PAYABLE.

            In September  2002,  the Company sold to accredited  investors  five
      60-day promissory notes in the principal sum of $25,000 each, resulting in
      net proceeds to the Company of $117,500,  net of offering costs. The notes
      bear  interest at 15% per annum  payable at maturity.  The notes include a
      default  penalty  pursuant  to which if the  notes are not paid on the due
      date the holder  shall have the option to purchase  twenty  five  thousand
      shares of the Company's  common stock for an aggregate  purchase  price of
      $125. If the non payment  continues for 30 days, then on the 30th day, and
      at the end of each  successive  30-day  period  until  the note is paid in
      full,  the holder shall have the option to purchase an  additional  twenty
      five  thousand  shares of the  Company's  common  stock  for an  aggregate
      purchase price of $125.  During the quarter ended March 31, 2003,  options
      for 150,000 shares were exercised by the note holders.  At March 31, 2003,
      the Company had reserved  475,000 shares of the Company's common stock for
      issuance  against  exercise of the options granted pursuant to the default
      penalty.

            On February  11,  2003,  the Company  commenced a private  placement
      offering to raise up to $100,000 in 30-day  promissory notes in increments
      of $5,000 bearing interest at 20% per annum. Only selected investors which
      qualify as  "accredited  investors"  as defined in Rule  501(a)  under the
      Securities  Act of 1933,  as amended,  were  eligible  to  purchase  these
      promissory  notes.  The Company  raised  $50,000  through the sale of such
      promissory notes.

            On March  17,  2003,  the  Company  commenced  a  private  placement
      offering to raise up to $250,000 in 6-month promissory notes in increments
      of $5,000 bearing interest at 15% per annum. Only selected investors which
      qualify as  "accredited  investors"  as defined in Rule  501(a)  under the
      Securities  Act of 1933,  as  amended,  are  eligible  to  purchase  these


                                       8

<PAGE>

      promissory  notes.  As of March 31,  2003 and May 10, 2003 the Company had
      raised  $10,000  and  $50,000,  respectively,  through  the  sale  of such
      promissory notes.

NOTE 7 - LONG-TERM DEBT.

            Long-term debt consists of the following:

                                                   March 31,   December 31,
                                                     2003          2002
                                                   ---------   ------------

     Bank note payable in equal monthly
       installments  of $2,043 including
       interest at 8.75%                            $26,642       $32,108

       Less: current maturities                      23,093        22,595
                                                    -------       -------

                                                    $ 3,549       $ 9,513
                                                    =======       =======

NOTE 8 - SERIES "A" CONVERTIBLE REDEEMABLE PREFERRED STOCK.

            The Certificate of Designation for the Company's  Series A Preferred
      Stock  provides  that at any time  after  December  1, 1999 any  holder of
      Series A  Preferred  Stock may require the Company to redeem his shares of
      Series A  Preferred  Stock (if there are funds with which the  Company may
      legally  do so)  at a  price  of  $1.00  per  share.  Notwithstanding  the
      foregoing  redemption  provisions,  if  any  dividends  on  the  Series  A
      Preferred Stock are past due, no shares of Series A Preferred Stock may be
      redeemed  by the  Company  unless  all  outstanding  shares  of  Series  A
      Preferred  Stock are  simultaneously  redeemed.  The  holders  of Series A
      Preferred  Stock may convert their Series A Preferred Stock into shares of
      Common  Stock of the  Company at a price of $5.20 per share.  At March 31,
      2003 and  December 31, 2002,  681,174  shares of Series A Preferred  Stock
      were outstanding.

NOTE 9 - STOCKHOLDERS' EQUITY.

      (a) Common Stock:

            During the three  months ended March 31,  2003,  the Company  issued
            1,375  shares of its common  stock  whose fair value was $124 to its
            board members for director's fees.

            On February 6, 2003, the Company entered into a deferment  agreement
            with  three  major  creditors   pursuant  to  which  liabilities  of
            approximately $523,887 in aggregate,  were deferred,  subject to the
            success of the Company's debt and equity  financing  efforts,  until
            January 15, 2005,  against a pledge of the StrandTek note receivable
            (see Note 4). In consideration for the deferral,  the Company agreed
            to issue 100,000  restricted  shares of the  Company's  common stock
            whose fair value was $3,000.

      (b) Warrants:

            The Company has issued common stock  purchase  warrants from time to
            time  to  investors   in  private   placements,   certain   vendors,
            underwriters,  and directors and officers of the Company. A total of
            44,000  shares  of common  stock  are  reserved  for  issuance  upon
            exercise  of  outstanding  warrants  as of March 31,  2003 at prices
            ranging from $3.20 to $8.10 and expiring through October 2004.

      (c) Stock Options Plans:

            The Company has two stock option plans, the 1998 Employee  Incentive
            Stock  Option Plan and a 2003 Equity  Participation  Plan.  The 1998
            Employee  Incentive  Stock  Option  Plan  provides  for the grant of
            options  to  purchase  shares  of  the  Company's  common  stock  to
            employees.


                                       9


<PAGE>

NOTE 9 - STOCKHOLDERS' EQUITY.  (Continued)

      (c) Stock Options Plans (continued):

            Information with respect to options under the 1998 Stock Option Plan
            is summarized as follows:

                                             For the Three Months Ended
                                                   March 31, 2002
                                             --------------------------
                                               Shares          Prices
                                             ----------      ----------
      Outstanding at beginning
         of period                             301,500      $0.41 to $1.94
      Granted                                       --
      Expired                                       --
      Cancelled                                     --
                                               -------
      Outstanding at end
         of period                             301,500      $0.41 to $1.94
                                               =======

            All  outstanding  options were either  cancelled  or expired  during
      2002.

            In February  2003, the Company  adopted a 2003 Equity  Participation
      Plan and pursuant to such plan entered into a Stock Option  Agreement with
      Mr.  Weinreb,  the  Company's  then newly  appointed  President  and Chief
      Executive  Officer (the  "Initial  Option  Agreement").  Under the Initial
      Option  Agreement,  the Company  granted Mr. Weinreb the right and option,
      exercisable  for 10  years,  to  purchase  up to  2,500,000  shares of the
      Company's   common  stock  at  an  exercise  price  of  $0.03  per  share.
      Additionally,  in the event that the closing price of the Company's common
      stock equals or exceeds $0.50 per share for any five  consecutive  trading
      days  during  the term of the  employment  agreement  (whether  during the
      initial term or an annual extension),  the Company has agreed to grant Mr.
      Weinreb, on the day immediately  following the end of the five day period,
      an option to  purchase an  additional  2,500,000  shares of the  Company's
      common stock at an exercise price of $0.50 per share, pursuant to the 2003
      Equity  Participation  Plan.  Mr. Weinreb has agreed that he will not sell
      any shares of the  Company's  common stock  obtained  upon exercise of the
      Initial Option Agreement or Additional Option Agreement prior to the first
      anniversary of the date of the employment agreement.

            All  options  were  granted at an  exercise  price equal to the fair
      value of the common stock at the grant date. Therefore, in accordance with
      the  provisions of APB Opinion No. 25 related to fixed stock  options,  no
      compensation  expense is  recognized  with  respect to options  granted or
      exercised.  Under the alternative  fair-value based method defined in SFAS
      No. 123, the fair value of all fixed stock options on the grant date would
      be recognized as expense over the vesting period.  Assuming the fair value
      of the  stock at the date of grant to be  $.3125  per  share in May  1996,
      $.40625 per share in May 1997,  $.6875 in January 1999, $1.00 per share in
      September 1999,  $1.94 in June 2000,  $1.097 in September 2000 and $.03 in
      February 2003, the life of the options to be from three to ten years,  the
      expected  volatility  at  200%,  expected  dividends  are  none,  and  the
      risk-free  interest rate of 10% and 3.97%, the Company would have recorded
      compensation  expense of $7,490 and  $14,531  for the three  months  ended
      March 31, 2003 and 2002, respectively,  as calculated by the Black-Scholes
      option pricing model.

      As such, pro-forma net loss and loss per share would be as follows:

                                             For the Three    For the Three
                                              Months Ended     Months Ended
                                             March 31, 2003   March 31, 2002
                                             --------------   --------------

      Net loss as reported                     $(142,980)       $(329,842)
      Additional compensation                     (7,490)         (14,531)
                                               ---------        ---------
      Adjusted net loss                        $(150,470)       $(344,373)
                                               =========        =========
      Loss per share as reported               $   (0.01)       $   (0.02)
                                               =========        =========
      Adjusted loss per share                  $   (0.01)       $   (0.02)
                                               =========        =========

NOTE 10 - INDUSTRY AND GEOGRAPHICAL SEGMENTAL INFORMATION.

            The Company's  operations  are currently in one segment,  namely the
      sale of extended  warranties and service contracts over the Internet.  The
      Company's operations are conducted entirely in the United States.


                                       10

<PAGE>

NOTE 11 - SUBSEQUENT EVENTS.

      (a) Stockholders' Equity

            As  described  in Note 6,  the  Company  granted  purchasers  of the
            Company's  September  2002  60-day  promissory  notes,   options  to
            purchase  shares of common  stock if the  Company  defaulted  on the
            payment of principal or interest on such promissory  notes. In April
            2003, two holders of such  promissory  notes exercised their options
            and  purchased  400,000  shares of  common  stock  resulting  in net
            proceeds to the Company of $2,000.


                                       11


<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

This Quarterly Report on Form 10-Q and the documents incorporated herein contain
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results,  performance or achievements of the Company, or industry results, to be
materially  different  from any  future  results,  performance  or  achievements
expressed  or  implied  by such  forward-looking  statements.  When used in this
Quarterly  Report,  statements  that are not statements of current or historical
fact may be  deemed  to be  forward-looking  statements.  Without  limiting  the
foregoing,  the words  "plan",  "intend"  "may,"  "will,"  "expect,"  "believe",
"could," "anticipate," "estimate," or "continue" or similar expressions or other
variations   or   comparable   terminology   are   intended  to  identify   such
forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof. Except
as  required  by law,  the  Company  undertakes  no  obligation  to  update  any
forward-looking  statements,  whether  as a result  of new  information,  future
events or otherwise.

GENERAL

In June 2002, in light of on-going operating losses,  management determined that
it was in the best interest of the Company to discontinue  the Company's sale of
extended  warranties  and service  contracts  business  and to seek new business
opportunities  for the Company.  On February 6, 2003, the Company appointed Mark
Weinreb as a member of the Board of  Directors  and as its  President  and Chief
Executive  Officer.  The Company and Mr.  Weinreb have been  exploring  business
plans for the  Company  that may  involve,  under the name  "Phase III  Medical,
Inc.",  entering the medical sector by acquiring or participating in one or more
biotech and/or medical  companies or  technologies,  owning one or more drugs or
medical devices that may or may not yet be available to the public, or acquiring
rights to one or more of such drugs or medical  devices or the  royalty  streams
therefrom.  Mr.  Weinreb was appointed to finalize and execute the Company's new
business plan. The Company will need to recruit management, business development
and technical personnel, and develop its business model. Accordingly, it will be
necessary for the Company to raise new capital.  There can be no assurance  that
any such business  plan  developed by the Company will be  successful,  that the
Company  will be able to  acquire  such new  business  or  rights  or raise  new
capital, or that the terms of any transaction will be favorable to the Company.

RESULTS OF OPERATIONS

The Company recognizes revenue from its warranty service contracts business over
the life of contracts executed. Additionally, the Company purchased insurance to
fully cover any losses under the service contracts from a domestic carrier.  The
insurance  premium  expense  and other costs  related to the sale are  amortized
ratably over the life of the contracts.

Three Months Ended March 31, 2003 Compared To Three Months Ended March 31, 2002.

The Company generated  recognized  revenues from the sale of extended warranties
and service  contracts  via the  Internet of $18,000 for the three  months ended
March 31, 2003  (three  months  ended March 31,  2002:  $25,000).  The  revenues
generated in the quarter were derived  entirely from revenues  deferred over the
life of contracts sold in prior periods. Similarly, direct costs incurred in the
period relate to costs previously deferred over the life of such contracts.

General and  administration  expenses  decreased 65.4% to $129,000 for the three
months  ended March 31, 2003 as compared to


                                       12

<PAGE>

$371,000 for the three months ended March 31, 2002. The three months ended March
31, 2003 is not strictly comparable to the same period in the prior year because
in the  corresponding  period in  fiscal  2002 the  Company  was  operating  its
warranty service  contracts  business from its office in Texas whereas in fiscal
2003 it has been endeavoring to establish new business operations in the medical
sector as  described  above.  Notwithstanding  the  foregoing,  the  decrease in
general and  administrative  expenses of $242,000 is primarily due to a decrease
in legal and professional fees $108,000, payroll $35,000, travel and subsistence
$27,000,  property costs $19,000 and  information  technology  expenses  $30,000
incurred  in  connection  with the  Company's  extended  warranties  and service
contracts business.

Interest income decreased by $41,000 in the three months ended March 31, 2003 as
compared to the corresponding  period in 2002 when interest income was generated
from the StrandTek loans and from investment in marketable securities.  Interest
expense  increased by $18,000 for the three months ended March 31, 2003 compared
to 2002 primarily as a result of short-term loans secured in September 2002.

For the reasons cited above,  net loss for the three months ended March 31, 2003
decreased  by 56.7% to $143,000  from the  comparable  loss of $330,000  for the
three months ended March 2002.

LIQUIDITY AND CAPITAL RESOURCES

The following  chart  represents the net funds provided by or used in operating,
financing and investment activities for each period as indicated:

                                                   Three Months Ended
                                             ------------------------------
                                             March 31, 2003  March 31, 2002
      Cash used in
      Operating Activities                      $(59,075)      $(256,136)

      Cash  (used  in)  provided
      by Investing Activities                       (587)        252,240

      Cash used in
      Financing activities                        55,284          (5,352)

The Company incurred a net loss of $142,980 for the three months ended March 31,
2003. Such losses adjusted for non-cash items such as deferred  revenues (net of
deferred acquisition costs) ($5,081) and other non cash credits totaling $16,255
resulted in cash used in operations  totaling $59,075 for the three months ended
March 31, 2003, net of working capital movements of $72,731.

To meet its cash  requirement  during the three months ended March 31, 2003, the
Company  relied on the net proceeds of sale of Promissory  Notes,  $60,000.  The
Company's  liquidity  position  continues to be hurt by  StrandTek's  failure to
repay loans advanced to them in the first quarter of fiscal 2002.

The Company has no contracted  capital  expenditure  commitments in place. As of
March 31, 2003, the Company had cash balances totaling $14,877. The Company will
rely on its cash reserves and short-term loans to meet its cash needs pending an
equity private  placement to fund its new business  operations until they become
cash generative.  Additionally,  on February 6, 2003, the Company entered into a
deferment  agreement with three major creditors pursuant to which liabilities of
approximately  $524,000 in aggregate,  were deferred,  subject to the success of
the Company's debt and equity financing efforts, until January 15, 2005, against
a pledge of the loans  advanced to StrandTek in the first quarter of fiscal 2002
in the sum of $1,250,000 plus accrued  interest.  While the Company was recently
awarded  summary  judgment  on its  claims  against  StrandTek,  there can be no
assurance that the Company will be able to collect on any judgment obtained.

In March  2003,  the  Company  commenced  a  private  placement  to  "accredited
investors"  to sell up to $250,000 in  promissory  notes (the "Notes") in $5,000
increments or multiples thereof, each bearing interest at 15% per annum and each
due 6 months from the date  issued  (the  "Maturity  Date").  Principal  will be
payable at the Maturity Date and interest will be payable monthly in arrears. In
the event that the Notes are not paid at the Maturity  Date,  the interest  rate
will  increase  to a default  rate of 20% per annum.  The  Company  will pay its
placement  agent an  amount  equal to 10% of the  proceeds  of the  offering  as
commissions for the placement agent's services,  in addition to reimbursement of
the  placement   agent's   expenses  and   indemnification   against   customary
liabilities.  The offering is a best efforts  offering with no required  minimum
amount to be raised.  If the full $250,000 is not raised,  the Company's startup
activities will be constrained. There can be no assurance that the offering will
be successful.

The Company's  consolidated financial statements have been prepared assuming the
Company will continue as a going  concern.  As  discussed,  the Company sold its
insurance subsidiary in July 2001. Additionally,  the Company discontinued sales
of its  extended  warranty  service  contracts  through its web site in December
2001. Accordingly,  the Company has no operations nor available means to finance
its  current  expenses  and with  which to pay its  current  liabilities.  These
factors raise  substantial  doubt about the  Company's  ability to continue as a
going  concern.  The  consolidated  financial  statements  do  not  include  any
adjustments that might result from the outcome of this uncertainty.

INFLATION

The Company does not believe that its operations have been materially influenced
by inflation  for the three  months  ended March 31, 2003, a situation  which is
expected to continue for the foreseeable future.


                                       13
<PAGE>

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Not applicable

Item 4. CONTROLS AND PROCEDURES

      Based on their most recent evaluation,  which was completed within 90 days
of the filing of this Form 10-Q, the Chief Executive  Officer concluded that the
Company's  disclosure  controls  and  procedures  are  effective  to ensure that
information  required  to be  disclosed  in reports  that the  Company  files or
submits  under the  Securities  Exchange Act of 1934,  as amended,  is recorded,
processed,  summarized, and reported within time periods specified in Securities
and Exchange  Commission rules and forms.  There were no significant  changes in
the Company's internal controls or other factors that could significantly affect
these disclosure controls subsequent to the date of their evaluation,  including
any  corrective  actions with regard to  significant  deficiencies  and material
weaknesses.


                                       14


<PAGE>

                           CORNICHE GROUP INCORPORATED

                                     PART II

                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Corniche v. Strandtek

On May 9,  2003,  the Court  granted  the  Company's  motion  for final  summary
judgment  against  all  parties  on  all  claims,   and  dismissed   defendants'
counterclaims against the Company as a matter of law.

As a result of this  ruling,  final  judgment  will be entered  against  the two
corporate  defendants,   Strandtek  (Delaware)  and  Strandtek  (Florida),   for
$1,415,622.02, plus post-judgment interest at 5% and an award of attorneys' fees
and collection  costs to be determined by the court if the parties are unable to
agree on a reasonable figure.

Also, final judgment will be entered against each of the four guarantors  (David
Veltman,  William  Buckles,  Jerome  Baumann  and Jan  Arnett)  for  $291,405.50
($250,000 plus 25% of the accrued unpaid interest of $165,622.02)  together with
post-judgment  interest at 5%. The  guarantors are not liable for any portion of
the yet-to-be-determined attorneys' fees and collection costs.

After  the  Court's  decision,  the  Company  was  informed  that the  corporate
defendants had made an assignment to the benefit of creditors on April 16, 2003,
and that its senior secured lender is  undersecured.  Accordingly,  it is highly
unlikely  that the Company will  recover on the judgment  other than against the
personal guarantors.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits

99.1  Certification pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b)   Reports on Form 8-K

      Form 8-K dated February 6, 2003,  reporting that the Company had appointed
      Mark Weinreb as its President, Chief Executive Officer and a member of the
      Board of Directors of the Company.

      Form 8-K dated  February  28,  2003,  reporting  that the Company had been
      granted  partial  summary  judgment in its  litigation  against  Strandtek
      International, Inc.

                                   SIGNATURES

      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
      Registrant  has duly  caused this report to be signed on its behalf by the
      undersigned thereunto duly authorized.

                        CORNICHE GROUP INCORPORATED (Registrant)

                        By: /s/ Mark Weinreb
                            ---------------------------------------------------
                            Mark Weinreb, President and Chief Executive Officer

                        Date: May 15, 2003


                                       15

<PAGE>

                                  CERTIFICATION

I, Mark Weinreb, certify that:

1. I have  reviewed  this  Quarterly  Report  on Form  10-Q of  Corniche  Group,
Incorporated;

2. Based on my  knowledge,  this  Quarterly  Report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this Quarterly
Report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this Quarterly  Report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this Quarterly Report;

4.  The  registrant's  directors  and I are  responsible  for  establishing  and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-14 and 15d-14) for the registrant and have:

      a)  designed  such  disclosure  controls  and  procedures  to ensure  that
      material   information   relating  to  the   registrant,   including   its
      consolidated  subsidiaries,  is made  known to us by others  within  those
      entities, particularly during the period in which this Quarterly Report is
      being prepared;

      b) evaluated the effectiveness of the registrant's disclosure controls and
      procedures  as of a date  within 90 days prior to the filing  date of this
      Quarterly Report (the "Evaluation Date"); and

      c)  presented  in  this  Quarterly   Report  our  conclusions   about  the
      effectiveness  of the  disclosure  controls  and  procedures  based on our
      evaluation as of the Evaluation Date;

5. I have disclosed,  based on our most recent  evaluation,  to the registrant's
auditors and the audit committee of registrant's  board of directors (or persons
performing the equivalent functions):

      a) all  significant  deficiencies  in the design or  operation of internal
      controls which could adversely affect the registrant's  ability to record,
      process,  summarize and report  financial data and have identified for the
      registrant's auditors any material weaknesses in internal controls; and

      b) any fraud,  whether or not material,  that involves management or other
      employees  who  have  a  significant  role  in the  registrant's  internal
      controls; and

6. I have  indicated in this  Quarterly  Report  whether there were  significant
changes in internal controls or in other factors that could significantly affect
internal  controls  subsequent  to the  date  of  our  most  recent  evaluation,
including any  corrective  actions with regard to significant  deficiencies  and
material weaknesses.

Date: May 15, 2003

/s/ Mark Weinreb
-----------------------------------
Name: Mark Weinreb
Title: Chief Executive Officer of Corniche Group, Inc.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>e14837ex99_1.txt
<DESCRIPTION>CERTIFICATION
<TEXT>

                                                                    Exhibit 99.1

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

      In connection  with the Quarterly  Report of Corniche  Group  Incorporated
(the  "Company")  on Form 10-Q for the three  months  ended March 31, 2003 filed
with the Securities and Exchange  Commission  (the  "Report"),  I, Mark Weinreb,
Chief Executive Officer of the Company,  certify,  pursuant to 18 U.S.C. Section
1350,  as adopted  pursuant  to Section 906 of the  Sarbanes-Oxley  Act of 2002,
that:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects,  the financial condition of the Company as of the
            dates  presented and the result of operations of the Company for the
            periods presented.
Dated: May 15, 2003

                                          /s/ Mark Weinreb
                                          -----------------------------
                                          Mark Weinreb
                                          Chief Executive Officer

This  certification  has been  furnished  solely  pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and has not been filed as part of the Report or as a
separate disclosure document.


</TEXT>
</DOCUMENT>
</SUBMISSION>
